About SKALE

SKALE Network is an innovative blockchain network that aims to bring unlimited scalability to Ethereum. By building elastic sidechains that are pegged to the Ethereum mainnet, SKALE allows developers to easily deploy high-performance decentralized applications (dApps) at scale.

Brief History of SKALE

SKALE Labs was founded in 2018 by Stan Kladko, Jack O’Holleran and Dmitriy Berenzon, who identified scalability as one of the key barriers to mainstream blockchain adoption. They set out to build a network specifically optimized for running high-performance dApps.

After raising $17 million in funding, the team launched the SKALE mainnet beta in June 2020. Since then, SKALE has continued to build out its network infrastructure and onboard new partners. It has emerged as one of the leading layer-2 solutions on Ethereum.

SKALE’s Unique Architecture

Unlike traditional blockchains, SKALE does not operate as a single chain. Instead, it allows dApps to launch customizable “elastic side chains” that run parallel to the Ethereum mainnet. This unique architecture offers several benefits:

• Scalability: Each SKALE chain can process thousands of transactions per second, while maintaining Ethereum-level security. This solves the throughput limitations of networks like Ethereum.
• Customizability: Developers can customize the parameters of their SKALE chain depending on their specific needs. This includes factors like block size, block time, consensus mechanism and number of validators.
• Interoperability: SKALE chains can seamlessly interconnect with Ethereum, allowing assets and data to be ported between chains.

Elastic Chains for Scalability

The core innovation that enables SKALE’s scalability is its dynamic elastic chains. SKALE operates by spinning up customizable chains that run parallel to Ethereum, with bridges allowing interoperability between the chains.

Developers can deploy their dApps on dedicated SKALE chains that are optimized for high throughput. When more capacity is needed, the network dynamically brings up additional chains to handle the increased load. This unique elastic architecture allows SKALE to scale dynamically to meet application demands.

Trusted Execution Environments

SKALE leverages trusted execution environments (TEEs) based on Intel’s SGX technology to protect the integrity and security of the network. TEEs act like secure enclaves that encrypt and isolate code execution from the operating system.

This allows SKALE nodes to run computations in a trusted and verifiable environment. Even if a server is compromised, the encryption guarantees that the software in the TEE remains secure. This enhances protection against threats like data tampering or censorship.

Decentralized Network of Validator Nodes

While SKALE chains themselves operate at high throughput, the security of the overall network is derived from a decentralized network of validator nodes secured by proof-of-stake.

These validators run Ethereum clients and coordinate activity across the different SKALE chains by voting on system upgrades, verifying transactions and distributing rewards. The incentives are structured to maximize participation and ensure robust decentralization of the validator nodes.

This architecture provides the best of both worlds – the decentralization and security of Ethereum combined with the scalability of SKALE’s elastic side chains.

SKALE Token (SKL) and Economics

The SKALE network has a native ERC-20 token called SKL. This token serves several purposes:

• It secures the PoS consensus by allowing validators to stake SKL in order to participate in the network.
• It aligns incentives by rewarding validators with SKL block rewards and transaction fees.
• It governs community decision making by granting voting weight based on the amount of SKL staked.

The SKL token is designed with strong inflationary incentives and liquidity rewards to drive adoption in the early stages of the network. Over time, as the network matures, rewards will shift towards a fee-driven model.

Ethereum Virtual Machine Compatibility

A major benefit of building on SKALE is that it provides Ethereum Virtual Machine (EVM) compatibility out-of-the-box. This means that developers can easily port smart contracts and dApps built for Ethereum over to SKALE chains with minimal changes.

This EVM compatibility drastically lowers the barriers to adoption, as developers don’t have to learn new languages or programming models. It also allows SKALE to leverage the vibrant ecosystem of tools, infrastructure and talent that already exists around Ethereum and EVM-compatible chains.

Use Cases and Adoption

Some of the initial use cases that SKALE aims to serve include decentralized finance (DeFi), gaming, digital collectibles and high-volume applications like advertising networks. These are areas where scalability is critically important but current blockchain platforms are lacking.

SKALE is already seeing strong adoption with over 100 projects and integrations, including major DeFi protocols like Synthetix, Chainlink, Bancor and BoringDAO. As SKALE continues to expand its ecosystem, its unique architecture makes it one of the most promising solutions to enable the next generation of blockchain applications.

In summary, SKALE brings a highly innovative architecture that can solve the blockchain scalability dilemma that has limited mainstream dApp adoption so far. By combining the security of Ethereum with the throughput of customizable elastic chains, SKALE unlocks a new design space for high-performance decentralized applications. With strong developer momentum already underway, SKALE is positioned to become a leading layer-2 platform for building the decentralized web of the future.